RETAIL MANAGEMENT

MBA

Retailing consists of the final activity

and steps needed to place merchandise, made elsewhere in to the hands of the consumer or to provide services to the consumer

 > 10% of the global labor force is in Retail  Every living individual is a customer

 Largest single industry in most nations
 In essence a Retailer is a service provider  Change is the driving force behind Retail

is now an issue of political public policy discussions  The industry is economically significant  Retail is an important social institution. The harmful effects of large distant retail centers which increased owing to car ownership. 30% on what we spend is on retail products and services  It is a sophisticated user of modern technology .

TRADITIONAL MFGR’S RESEARCH MFGR RETAIL WHOLESALE CONSUMER TODAY RETAIL'S RESEARCH MFGR RETAIL CONSUMER .

50% part time)  R o c e 10% to 40%  International operations  Shapes consumer demand  Services included . Large multiple chains  Own brands  Big employer (65% female.

 Convenience of  Location  Goods range  Credit  After sales  Sales with service  Customer is public  Simplistic pricing  Different risk type .

PRODUCT – ORIENTED COMPANY RETAIL CHANNEL MANAGEMENT RETAIL PRODUCT CREATION / OFFER PROMOTION SALES .1.

2. MARKET ORIENTED COMPANY MARKETING RESEARCH RETAIL OFFER FORMULATION RETAIL CHANNEL MANAGEMENT PROMOTION SALES .

INTEGRATED COMPANY MARKETING RESEARCH RETAIL CHAIN MANAGEMENT PROMOTION PRINCIPLES OF PROVIDING VALUE SALES .3.

MANAGEMENT EXPERTISE NEEDED  Finance  Accounting  Hrm  Logistics  Computer systems  Marketing  Et al .

ENTREPRENEURIAL All large retail chains have started very small Some of the world’s richest people are retail entrepreneurs .

ANALYTICAL METHOD  Finding and investigating facts  Summarizing and synthesizing these facts  Decisions on models and retail phenomena theories  Standardized set of procedures. guidelines and success formulae is the result .

intuition and implicit knowledge in place of facts  Novel way at problem solving  Cannot be a permanent long-term way .CREATIVE METHOD  Use of insight.

TWO – PRONGED APPROACH  Adopting both approaches most likely to be successful  Necessary in all fields of retailing .

Management planning 3. Decision making . Environmental 2. Profit 4.FOUR MAJOR ORIENTATIONS 1.

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* DEMOGRAPHIC * LIFE – STYLE * PSYCHOGRAPHIC * ECO INFLUENCES TECHNOLOGY * AUTOMOBILES * J – i – T DELIVERY * MICROWAVES * INTERNET COMPETITION * CHANNEL OPTIONS * RETAIL TYPES * RETAIL NATURE .

INTRA TYPE:  Competition between the same type of retailers INTER TYPE:  Retailers selling similar products using different formats .

Provide specialized assortment 2. Break bulk 4. Provide services 3. Hold inventory .1.

High-priced merchandise top range store Low-priced merchandise high-value store Trading-up mid-priced merchandise mid-range store .

LOW PRICE LOW EXPENSES LOW STATUS COMPETITOR RESTRICTED SERVICES LIMITED PRODUCT MIX MODEST ATMOSPHERE ENTRY STAGE .

SUCCESS ACCEPTANCE IMPROVED FACILITIES ENHANCED SERVICES NEW PRODUCT LINES IMPROVED PRODUCT LINES TRADING UP .

MATURITY INABILITY TO ADAPT RETURN RATE DOWN GAP IN THE WHEEL NEW ENTRY VULNERABILITY .

GENERAL RETAILER ENTRY DIVERSIFY FOR GROWTH FOCUS: PRODUCT OR CONSUMER RETURN OF THE SMALL STORE BACK TO SPECIALIZATION .

CASH FLOW TIME .

000 to 50.000 to 200.000 sq ft) Large CS’s with expanded service in bakery.000 sq ft) with 30% Food and 70% Non Food items . seafood and non food items SUPER CENTER: (150.CONVENTIONAL SUPER MARKET: Self Service Food Store with limited non food items  High-low pricing strategy  Everyday low pricing SUPER STORE: (20.

display. speedy check out .000 sq ft) 70% Food and 30 % general goods WAREHOUSE CLUB: (100.HYPER MARKET: (100. service.000 to 150.000 sq ft) Limited assortment.000 sq ft) Limited assortment.000 to 300. credit CONVENIENCE STORE: (2 to 3.

self service  HOME IMPROVEMENT CENTER: Category Specialist offering DIY equipment . limited service. low prices  SPECIALTY STORE: (8.000 sq ft) Limited but complementary merchandise. low prices. high service level  CATEGORY SPECIALIST: Narrow but deep assortment. DISCOUNT STORE: Broad variety.

 Electronic Retailing  Direct Mail & Catalog Retailing  Direct Selling  T V Home Shopping  Vend Machine  Etc…………. .

1. FRANCHISING: Assorted formats . SINGLE STORE ESTABLISHMENTS: Sometimes they form themselves into groups 2. CORPORATE RETAIL CHAINS: From a chain of 2 to 10.000 3.

 VARIETY: The number of different merchandise categories within a store (Breadth)  ASSORTMENT: The number of different items in a merchandise category (Depth)  STOCK KEEPING UNIT: Each different item of merchandise  SCRAMBLED MERCHANDISE: Products which are not typically representative of that type of store in which they are sold .

 Overall response rate  Average purchase amount (By location. gender etc)  Volumes by product categories  Revenues generated by mailing lists .

Develop Brand Customize Provide pictures and other info (Speed?) Reduce number of clicks needed Provide best possible on-site search engine Capitalize customer info Integrate Online and Offline .1. 5. 6. 4. 3. 2. 7.

8. 9. Look for partnering opportunities Save data Indicate shipping charges clearly Clear delivery options Take care of stock-outs State return and privacy policies . 12. 11. 10. 13.

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 ORGANIZED SECTOR Rs. 100.000 crores  5% of total country retailing  Growing at about 30% y-o-y  GDP contribution still small  Own brands trend just started  Large houses have entered .